The Seattle Times reports that Washington State Governor Christine Gregoire has announced that the Washington may sue the federal government over the Bush Administration's recent income limits on the Children's Health Insurance Program (CHIP).

Gregoire said she's baffled by the president's refusal to expand the program, and upset at the administration's new restrictions on the states. She said she's asked the state attorney general to prepare a possible lawsuit.

In late August, New York Governor Eliot Spitzer also announced that New York might sue the federal government over the the CHIP limits.